Reckitt Benckiser (LON: RKT) shares dropped 4.4% in early trading on Wednesday after the consumer goods group reported weaker-than-expected like-for-like sales growth for the first quarter.
The company posted a 1.1% rise in like-for-like net revenue for the three months to March, falling short of the 1.4% increase forecast by analysts in a company-compiled poll. Group net revenue declined 1.4% to £3.68 billion on a reported basis.
Core Reckitt, which excludes its non-core Essential Home and Mead Johnson Nutrition units, delivered stronger performance with 3.1% like-for-like growth.
This was said to have been driven by Emerging Markets, where LFL sales rose 10.7%, supported by strong momentum in China and India.
In contrast, revenues fell in both North America and Europe, down 0.9% and 1.7% respectively, amid retailer destocking and slowing consumer demand.
The Essential Home segment, representing 13% of group sales, declined 7% on a like-for-like basis, while Mead Johnson Nutrition fell 0.5%.
Both businesses are expected to return to growth in the second half of 2025.
Chief Executive Kris Licht described the quarter as “solid” and reaffirmed the company’s full-year guidance, targeting 2% to 4% group like-for-like revenue growth and 3% to 4% growth in Core Reckitt.
Reckitt added that it continues its £1 billion share buyback programme, with £815 million completed to date. The company is also progressing plans to exit its Essential Home division in 2025.
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